An internal auditor found the following information while reviewing the monthly financial statements for a...

Vendor: IIA
Product: IIA-CIA-Part3
Update on: Sep 17, 2025
Questions: 516

IIA IIA-CIA-Part3 Question Answer

An internal auditor found the following information while reviewing the monthly financial statements for a wholesaler of safety glasses: Opening inventory: 1,000 units at $2 per unit; Purchased: 5,000 units at $3 per unit; Sold: 3,000 units at $7 per unit. The cost of goods sold was reported at $8,500. Which of the following inventory methods was used to derive this value?

Average cost method

First-in, first-out (FIFO) method

Specific identification method

Activity-based costing method